why it will go under , page-19

From my past occupation of working in corporate lending, rolling over the debt is an easy solution for both parties. It does however become a game of getting the upper hand. Banks hate to lose the psychological control.This is clear by the fact the Banks have given to Feb 08 to resolve the lending package.

In this situatiuon, CNP's management have failed miserably. They borrowed heavily and then got into trouble in a very short period of time. They didn't read the market, had no contigency plans and have been forced into a corner. Under these circumstances, banks don't like to refinance because they feel they are rewarding poor management decisions. Furthermore, 10Billon needs refinancing in 12 months.

Depending on the bankers self imposed risks weightings, they may have decided that they don't want Centro alltogehter. I feel this is the situation. Hence the interest rate increases are not a lending hurdle.

Under these circumstances with the credit markets over the next tweleve months very uncertain, it will be a very difficult task to get the credit. There may be a white knight to bail them out resulting in a substantial dilution of the share value leaving little SP growth from the current closing price.

I don't hold but would consider if the SP fell to very low levels in the next day or so.